The American Dream: Work More, Earn Less
According to the New York Times, American workers are producing more and earning less, exacerbating the vanishing of our working middle class.
The federal government started collecting data in 1947 and not since then have wages and salaries made up a lower share of the nation's gross domestic product while corporate profits have climbed to their highest share since the 1960's.
When asked why the average American seems skittish about the economy when most indicators point to healthy growth, Frank Luntz, a Republican campaign consultant said, "The answer is they don't feel it in their weekly paychecks."
And that's because it's not in their paychecks.
All of this comes on the heels of the Republicans blocking a federal minimum wage hike, which has been frozen now for a decade.
Adding insult to injury, workers can't even point to better benefits to even out the stagnant earnings. Over the last year, the value of employee benefits has risen only 3.4 percent, while inflation has exceeded 4 percent, according to the Labor Department. That's not even treading water.
As the Times puts it, "productivity gains have continued while the pay increases have not kept up. Worker productivity rose 16.6 percent from 2000 to 2005, while total compensation for the median worker rose 7.2 percent, according to Labor Department statistics analyzed by the Economic Policy Institute, a liberal research group. Benefits accounted for most of the increase."
Welcome to Monday morning.
Comments
Not to be a grammar nazi, but I think you meant "exacerbating" the vanishing of the working middle class.
And I mean really, this wouldn't be a problem if you people hadn't squandered your $300 tax cuts that you got five years ago.
Posted by: steve-o | August 28, 2006 12:50 PM
Right you are, Steve-o. I am a horrible typist, especially when I'm writing fast. Thanks for the catch.
Posted by: Derek Phillips | August 28, 2006 1:47 PM